Abbott Reports 16.1 Percent Sales Growth in Fourth Quarter

- Worldwide Pharmaceutical Sales Increased 18.7 Percent -

ABBOTT PARK, Ill., January 23, 2008 /PRNewswire-FirstCall/ -- Abbott today announced financial results for the fourth quarter ended Dec. 31, 2007.

     *    Diluted earnings per share, excluding specified items, were $0.93,

          within Abbott's previously announced guidance range of $0.91 to

          $0.93. Diluted earnings per share under Generally Accepted

          Accounting Principles (GAAP) were $0.77.


     *    Worldwide sales in the fourth quarter increased 16.1 percent to $7.2

          billion, including a favorable 4.5 percent effect of exchange rates.

          For the full-year 2007, worldwide sales increased 15.3 percent to

          $25.9 billion, including a favorable 3.2 percent effect of exchange

          rates.


     *    U.S. pharmaceutical sales increased 16.6 percent and international

          pharmaceutical sales increased 21.3 percent, driven by double-digit

          growth in HUMIRA(R), Kaletra(R) and TriCor(R), and including $179

          million of Niaspan(R) sales. HUMIRA achieved full-year worldwide

          sales in excess of $3 billion in 2007 and the company forecasts

          global sales for HUMIRA of approximately $4 billion in 2008.


     *    Worldwide medical products sales increased 11.5 percent, driven by

          15.2 percent growth in worldwide Diabetes Care sales and 16.4

          percent growth in international diagnostics sales.


     *    Worldwide nutritional products sales were led by 26.2 percent growth

          in international nutritionals, with continued strong performance in

          key emerging growth markets.


"The strength and balance of Abbott's broad mix of businesses helped us to deliver another year of consistent performance," said Miles D. White, chairman and chief executive officer, Abbott. "Both our sales and earnings per share increased double digits. Given the leadership positions of our major businesses, and the new products launching over the next year, we expect another year of strong results in 2008."

    The following is a summary of fourth-quarter 2007 sales.



                                                                    Impact of

    Sales Summary -                            4Q07      % Change  Exchange on

     Quarter Ended 12/31/07                ($ millions)  vs. 4Q06   % Change


    Total Sales                                $7,221      16.1        4.5


        Total U.S. Sales                       $3,591      10.6        ---


        Total International Sales              $3,630      22.1        9.5


    Worldwide Pharmaceutical Sales             $4,197      18.7        4.6


        U.S. Pharmaceuticals                   $2,306      16.6        ---


        International Pharmaceuticals          $1,891      21.3       10.4


    Worldwide Nutritional Sales                $1,187      11.2 (a)    2.8


        U.S. Nutritionals                        $616       0.2 (a)    ---


        International Nutritionals               $571      26.2        6.6


    Worldwide Diagnostics Sales (b)              $859      12.8        6.8


        U.S. Diagnostics                         $213       3.0        ---


        International Diagnostics                $646      16.4        9.4


    Worldwide Vascular Sales                     $417       7.2        4.4


         U.S. Vascular                           $196     (12.8)       ---


         International Vascular                  $221      34.3       10.3


    Other Sales (c)                              $561      21.2        4.3


     a    Reflects the impact of the completion of the U.S. co-promotion of

          Synagis in 2006. Excluding the U.S. sales of Synagis in 2006,

          Worldwide Nutritional Sales increased 17.8 percent and U.S.

          Nutritional Sales increased 11.0 percent.


     b    Includes sales from the molecular diagnostics and core laboratory

          diagnostics businesses, which includes point of care.


     c    Includes sales from diabetes, bulk pharmaceuticals, spine and animal

          health businesses.


    Note:  See "Consolidated Statement of Earnings" for more information.




    The following is a summary of sales for the full-year 2007.


                                                                    Impact of

    Sales Summary -                            FY07      % Change  Exchange on

     Twelve Months Ended 12/31/07           ($ millions)  vs. FY06   % Change


    Total Sales                                $25,914     15.3        3.2


        Total U.S. Sales                       $12,874     12.0        ---


        Total International Sales              $13,040     18.8        6.6


    Worldwide Pharmaceutical Sales             $14,632     18.0        3.3


        U.S. Pharmaceuticals                    $7,806     19.2        ---


        International Pharmaceuticals           $6,826     16.8        7.0


    Worldwide Nutritional Sales                 $4,388      1.7 (a)    1.7


        U.S. Nutritionals                       $2,348     (9.4)(a)    ---


        International Nutritionals              $2,040     18.4        4.4


    Worldwide Diagnostics Sales(b)              $3,158     11.1        4.7


        U.S. Diagnostics                          $820      2.6        ---


        International Diagnostics               $2,338     14.4        6.5


    Worldwide Vascular Sales                    $1,663     53.8        3.1


         U.S. Vascular                            $863     33.5        ---


         International Vascular                   $800     83.9        7.7


    Other Sales(c)                              $2,073     12.5        3.6


     a    Reflects the impact of the completion of the U.S. co-promotion of

          Synagis in 2006. Excluding the U.S. sales of Synagis in 2006,

          Worldwide Nutritional Sales increased 11.3 percent and U.S.

          Nutritional Sales increased 5.7 percent.


     b    Includes sales from the molecular diagnostics and core laboratory

          diagnostics businesses, which includes point of care.


     c    Includes sales from diabetes, bulk pharmaceuticals, spine and animal

          health businesses.


    Note:  See "Consolidated Statement of Earnings" for more information.




    The following is a summary of Abbott's fourth-quarter 2007 sales for

selected products.



    Quarter Ended 12/31/07           Percent        Percent           Percent

    (dollars in millions)            Change  Rest   Change            Change

                               U.S.    vs.    of      vs.     Global    vs.

                              Sales   4Q06   World   4Q06      Sales   4Q06

    Pharmaceutical Products

    HUMIRA                     $527   42.8   $427    70.4(a)   $954    53.9

    Depakote                   $435   13.4    $26    25.8      $461      14

    TriCor                     $392   20.5    ---     ---      $392    20.5

    Kaletra                    $153   11.1   $218    37.4(b)   $371    25.2

    Biaxin (clarithromycin)     $16  (71.7)  $184     2.3(c)   $200   (15.2)

    Ultane/Sevorane             $50  (13.6)  $150     9.7(d)   $200     2.8

    Niaspan                    $179    n/a    ---     ---      $179     n/a

    Synthroid                  $132   15.5    $21    22.2      $153    16.4


    Nutritional Products

    Pediatric Nutritionals     $325   10.8    $302   30.5      $627    19.5

    Adult Nutritionals         $280   10.5    $270   21.7(e)   $550    15.7


    Medical Products

    Abbott Diabetes Care       $134   (0.3)   $200   28.7(f)   $334    15.2

    Coronary Stents             $77   27.5    $106   61.6      $183    45.2

    Other Coronary              $63    (29)    $80   13.5      $143   (10.1)

    Endovascular                $56  (25.3)    $35   23.4       $91   (11.9)


     a    Without the positive impact of exchange of 16.9 percent, HUMIRA

          sales increased 53.5 percent internationally.

     b    Without the positive impact of exchange of 10.3 percent, Kaletra

          sales increased 27.1 percent internationally.

     c    Without the positive impact of exchange of 8.1 percent,

          clarithromycin sales decreased 5.8 percent internationally.

     d    Without the positive impact of exchange of 9.3 percent, Sevorane

          sales increased 0.4 percent internationally.

     e    Without the positive impact of exchange of 7.4 percent, Adult

          Nutritionals sales increased 14.3 percent internationally.

     f    Without the positive impact of exchange of 11.6 percent, Abbott

          Diabetes Care sales increased 17.1 percent internationally.

n/a = Percent change is not applicable due to the acquisition of Niaspan in the fourth-quarter 2006.

The following is a summary of sales for the full-year 2007 for selected products.


    Twelve Months Ended 12/31/07     Percent        Percent           Percent

    (dollars in millions)            Change  Rest   Change            Change

                               U.S.    vs.    of      vs.     Global    vs.

                              Sales   FY06   World   FY06      Sales   FY06

    Pharmaceutical Products

    HUMIRA                   $1,651   40.4  $1,413   62.9(a)  $3,064   49.9

    Depakote                 $1,480   20.3     $95   21.7     $1,575   20.4

    Kaletra                    $538    5.0    $787   26.3(b)  $1,325   16.7

    TriCor                   $1,218   16.2     ---    ---     $1,218   16.2

    Ultane/Sevorane            $200  (23.4)   $559    3.9(c)    $759   (5.0)

    Biaxin (clarithromycin)     $36  (75.9)   $688    3.5(d)    $724  (11.2)

    Niaspan                    $658    n/a     ---    ---       $658    n/a

    Synthroid                  $458   (2.7)    $75   17.2       $533   (0.3)


    Nutritional Products

    Pediatric Nutritionals   $1,233    9.4  $1,093   21.6     $2,326   14.8

    Adult Nutritionals       $1,077    1.9    $947   14.9(e)  $2,024    7.6


    Medical Products

    Abbott Diabetes Care       $553    1.3    $696   18.0(f)  $1,249    9.9

    Coronary Stents            $306    n/m    $366    n/m       $672    n/m

    Other Coronary             $300   13.0    $304   59.8       $604   32.5

    Endovascular               $257    0.8    $130   42.9       $388   11.9


     a    Without the positive impact of exchange of 13.2 percent, HUMIRA

          sales increased 49.7 percent internationally.

     b    Without the positive impact of exchange of 7.8 percent, Kaletra

          sales increased 18.5 percent internationally.

     c    Without the positive impact of exchange of 6.2 percent, Sevorane

          sales decreased 2.3 percent internationally.

     d    Without the positive impact of exchange of 5.0 percent,

          clarithromycin sales decreased 1.5 percent internationally.

     e    Without the positive impact of exchange of 4.9 percent, Adult

          Nutritionals sales increased 10.0 percent internationally.

     f    Without the positive impact of exchange of 8.4 percent, Abbott

          Diabetes Care sales increased 9.6 percent internationally.

n/a = Percent change is not applicable due to the acquisition of Niaspan in the fourth-quarter 2006.

    n/m = Percent change is not meaningful.



    Business Highlights


     *    HUMIRA(R) Approved for Psoriasis in United States and Europe --

          Abbott recently received European and U.S. regulatory approval for

          HUMIRA for the treatment of moderate to severe plaque psoriasis.

          Psoriasis, the fifth indication approved for HUMIRA, affects 125

          million people worldwide. The launch of the psoriasis indication is

          now underway.


     *    Kaletra(R) Approved for Pediatric Use -- In November, Abbott

          received U.S. Food and Drug Administration (FDA) approval for a new

          lower-strength tablet formulation of its leading HIV protease

          inhibitor. Kaletra is the only co-formulated protease inhibitor

          tablet approved for use in children. The lower-strength formulation

          is under active review in Europe and upon approval, Abbott intends

          to register this formulation broadly around the world. More than 2

          million children worldwide are living with HIV/AIDS.


     *    Fourth-Quarter Product Submissions -- During the quarter, Abbott

          completed the FDA submissions of two pharmaceutical therapies, ABT-

          335 and controlled-release Vicodin(R). ABT-335 is a next-generation

          fenofibrate to treat triglycerides. Controlled-release Vicodin is an

          extended-release formulation of the pain medication Vicodin. Also in

          the fourth quarter, TAP, Abbott's joint venture with Takeda

          Pharmaceutical, announced the FDA submission of TAK-390MR, a new

          proton pump inhibitor, to treat digestive disorders.


     *    Simcor(R) Data Presented at American Heart Association Conference --

          In November, Abbott presented data on Simcor, Abbott's fixed-dose

          combination of Niaspan(R) and simvastatin currently under FDA

          regulatory review. Data demonstrated Simcor is effective at lowering

          non-HDL cholesterol while demonstrating improvements on other key

          lipids, such as LDL "bad" and HDL "good" cholesterol and

          triglycerides.


     *    XIENCE(TM) V Receives Recommendation for Approval -- In November,

          the Circulatory System Devices Advisory Panel to the FDA recommended

          approval for the XIENCE V drug-eluting stent. XIENCE V is the first

          drug-eluting stent to demonstrate superiority to another drug-

          eluting stent in the primary endpoint of in-segment late loss in a

          randomized controlled head-to-head trial. Additionally, XIENCE V

          showed clinical superiority in the safety and efficacy endpoint of

          major adverse cardiac events (MACE).


     *    Fully-Automated Blood Screening Test Approved -- In January, Abbott

          announced FDA approval of its first fully-automated blood screening

          test for the human T-lymphotropic virus type I and II (HTLV-I and

          HTLV-II) for use on the ABBOTT PRISM(R) instrument. These viruses

          are associated with several diseases including human T-cell leukemia

          and neurological disorders. ABBOTT PRISM also includes four

          hepatitis tests and is used in more than 30 countries.



    Abbott issues earnings-per-share outlook for 2008

Abbott is announcing earnings-per-share guidance of $3.20 to $3.25 for the full-year 2008 and earnings-per-share guidance for the first-quarter 2008 of $0.61 to $0.63, both excluding specified items.

Abbott forecasts specified items for the full-year 2008 of approximately $0.08 per share, primarily associated with previously announced cost reduction initiatives. Including specified items, projected earnings per share under GAAP would be $3.12 to $3.17 for the full-year 2008.

Abbott forecasts specified items for the first-quarter 2008 of approximately $0.03 per share, primarily associated with previously announced cost reduction initiatives. Including these specified items, projected earnings per share under GAAP would be $0.58 to $0.60 for the first-quarter 2008.

Abbott declares quarterly dividend

On Dec. 14, 2007, the board of directors of Abbott declared the company's quarterly common dividend of 32.5 cents per share. The cash dividend is payable Feb. 15, 2008, to shareholders of record at the close of business on Jan. 15, 2008. This marks the 336th consecutive dividend paid by Abbott since 1924.

About Abbott

Abbott is a global, broad-based health care company devoted to the discovery, development, manufacture and marketing of pharmaceuticals and medical products, including nutritionals, devices and diagnostics. The company employs 65,000 people and markets its products in more than 130 countries.

Abbott's news releases and other information are available on the company's Web site at http://www.abbott.com. Abbott will webcast its live fourth-quarter earnings conference call through its Investor Relations Web site at http://www.abbottinvestor.com at 8 a.m. Central time today. An archived edition of the call will be available after 11 a.m. Central time.


             - Private Securities Litigation Reform Act of 1995 -

               A Caution Concerning Forward-Looking Statements

Some statements in this news release may be forward-looking statements for the purposes of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those indicated. Economic, competitive, governmental, technological and other factors that may affect Abbott's operations are discussed in Item 1A, "Risk Factors," to our Annual Report on Securities and Exchange Commission Form 10-K for the year ended Dec. 31, 2006, and are incorporated by reference. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of subsequent events or developments.



                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

               Fourth Quarter Ended December 31, 2007 and 2006

                                 (unaudited)


                                                                    Percent

                                           2007            2006      Change


    Net Sales                        $7,221,351,000  $6,217,969,000   16.1

    Cost of products sold             3,161,680,000   2,865,612,000   10.3

    Research and development            662,401,000     596,167,000   11.1

    Acquired in-process and

     collaborations research &

     development                                ---   1,307,000,000    n/m

    Selling, general and

     administrative                   1,879,269,000   1,703,112,000   10.3

    Total Operating Cost and

     Expenses                         5,703,350,000   6,471,891,000  (11.9)


    Operating earnings (loss)         1,518,001,000    (253,922,000)   n/m


    Net interest expense                101,145,000      89,261,000   13.3

    Net foreign exchange (gain) loss     (1,061,000)     10,803,000    n/m

    (Income) from TAP Pharmaceutical

     Products Inc. joint venture       (121,574,000)   (118,528,000)   2.6

    Other (income) expense, net          56,566,000       6,642,000    n/m  1)

    Earnings (loss) before taxes      1,482,925,000    (242,100,000)   n/m

    Taxes on earnings                   279,898,000     234,114,000   19.6


    Net Earnings (Loss)              $1,203,027,000   $(476,214,000)   n/m


    Net Earnings Excluding Specified

     Items, as described below       $1,452,565,000  $1,152,965,000   26.0  2)


    Diluted Earnings (Loss) Per

     Common Share                             $0.77          $(0.31)   n/m


    Diluted Earnings Per Common

     Share, Excluding Specified

     Items, as described below                $0.93           $0.75   24.0  2)


    Average Number of Common Shares

     Outstanding Plus Dilutive Common

     Stock Options and Awards         1,562,664,000   1,533,489,000


     1)   Other (income) expense, net in 2007 and 2006 is primarily associated

          with adjustments related to Abbott's ownership of Boston Scientific

          stock. These items have been reflected as specified items in both

          periods as discussed in Q&A Answer 6.


     2)   2007 Net Earnings Excluding Specified Items excludes after-tax

          charges of $42 million, or $0.03 per share, for acquisition

          integration, $34 million, or $0.02 per share, for fair-value loss

          adjustments related to Boston Scientific stock, $26 million, or

          $0.02, for write-down of Omnicef inventory and $148 million, or

          $0.09 per share, for cost reduction initiatives and other.


          2006 Net Earnings Excluding Specified Items excludes after-tax

          charges of $1.3 billion, or $0.85 per share, for acquired in-process

          and collaborations research and development primarily related to the

          Kos acquisition, $60 million, or $0.04 per share, for acquisition

          integration, $74 million, or $0.05 per share, primarily for costs

          associated with an asset impairment related to the generic

          introduction of Biaxin XL, $69 million, or $0.04 per share, for

          litigation associated with the settlement of an intellectual

          property matter and $126 million, or $0.08 per share, for costs

          associated with cost reduction initiatives and other.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

    n/m = Percent change is not meaningful.




                     Abbott Laboratories and Subsidiaries

                      Consolidated Statement of Earnings

                    Year Ended December 31, 2007 and 2006

                                 (unaudited)


                                                                      Percent

                                          2007             2006       Change


    Net Sales                      $25,914,238,000  $22,476,322,000   15.3

    Cost of products sold           11,422,046,000    9,815,147,000   16.4

    Research and development         2,505,649,000    2,255,271,000   11.1

    Acquired in-process and

     collaborations research &

     development                               ---    2,014,000,000    n/m

    Selling, general and

     administrative                  7,407,998,000    6,349,685,000   16.7

    Total Operating Cost and

     Expenses                       21,335,693,000   20,434,103,000    4.4


    Operating earnings               4,578,545,000    2,042,219,000  124.2


    Net interest expense               456,390,000      292,347,000   56.1

    Net foreign exchange (gain) loss    14,997,000       28,441,000  (47.3)

    (Income) from TAP Pharmaceutical

     Products Inc. joint venture      (498,016,000)    (475,811,000)   4.7

    Other (income) expense, net        135,526,000      (79,128,000)   n/m  1)

    Earnings before taxes            4,469,648,000    2,276,370,000   96.3

    Taxes on earnings                  863,334,000      559,615,000   54.3


    Net Earnings                    $3,606,314,000   $1,716,755,000  110.1


    Net Earnings Excluding Specified

     Items, as described below      $4,429,146,000   $3,880,826,000   14.1  2)


    Diluted Earnings Per Common Share        $2.31            $1.12  106.3


    Diluted Earnings Per Common

     Share, Excluding Specified

     Items, as described below               $2.84            $2.53  12.32  2)


    Average Number of Common Shares

     Outstanding Plus Dilutive Common

     Stock Options and Awards        1,560,057,000    1,536,724,000


     1)   Other (income) expense, net in 2007 and 2006 is primarily associated

          with adjustments related to Abbott's ownership of Boston Scientific

          (BSX) stock. 2007 also includes realized gains on the sales of the

          BSX stock. These items have been reflected as specified items in

          both periods.


     2)   2007 Net Earnings Excluding Specified Items excludes after-tax

          charges of $206 million, or $0.13 per share, for acquisition

          integration, $92 million, or $0.06 per share, for a contract

          termination, $75 million, or $0.05 per share, for fair-value loss

          adjustments, net of realized gains, related to Boston Scientific

          stock, $60 million, or $0.04 per share, for write-down of Omnicef

          inventory, $17 million, or $0.01 per share, for transaction and

          separation costs relating to the terminated sale of the core

          laboratory diagnostics business, and $373 million, or $0.24 per

          share, for cost reduction initiatives and other.


          2006 Net Earnings Excluding Specified Items excludes after-tax

          charges of $1.7 billion, or $1.13 per share, for acquired in-process

          and collaborations research and development, $141 million, or $0.09

          per share, for cost reduction initiatives, $220 million, or $0.14

          per share, for integration activities and other primarily related to

          the Guidant acquisition, $74 million, or $0.05 per share, primarily

          for costs associated with an asset impairment related to the generic

          introduction of Biaxin XL, $70 million, or $0.05 per share, for

          costs associated with Abbott's decision to discontinue the

          commercial development of the ZoMaxx drug-eluting stent, $69

          million, or $0.04 per share, for litigation costs associated with

          the settlement of an intellectual property matter and $53 million,

          or $0.04 per share, for a philanthropic contribution to the Abbott

          Fund. These specified items were partially offset by an after-tax

          gain of ($70 million), or ($0.04) per share, for fair-value

          adjustments for the gain-sharing aspect of the Boston Scientific

          stock purchase and a favorable adjustment to tax expense of ($132

          million), or ($0.09) per share, as a result of the resolution of

          prior years' tax audits.

NOTE: See attached questions and answers section for further explanation of Consolidated Statement of Earnings line items.

    n/m = Percent change is not meaningful.



                             Questions & Answers


     Q1)  What drove the 18.7 percent worldwide pharmaceutical sales growth?


     A1)  U.S. pharmaceutical sales growth of 16.6 percent was led by strong

          performance across several major brands. HUMIRA increased more than

          40 percent as market demand continued to grow across the

          rheumatology, dermatology and gastroenterology segments. The launch

          of the Crohn's indication is proceeding well, with HUMIRA market

          share exceeding 30 percent in less than a year since launch.

          Abbott's lipid franchise also performed well in the quarter, with

          strong sales of Niaspan and TriCor. U.S. pharmaceutical sales

          increased in the quarter despite a decline in Omnicef sales due to

          generic competition.


          International pharmaceutical sales increased 21.3 percent during the

          quarter, including a 10.4 percent favorable impact from exchange.

          International growth was driven by HUMIRA, which grew 70.4 percent,

          and Kaletra, which grew 37.4 percent, based on the continued

          strength of the international launch of Kaletra tablets.


     Q2)  What drove the double-digit growth in global nutritionals and

          medical products sales?


     A2)  Global Nutritional sales performance was led by 26.2 percent growth

          in international nutritionals, including a 6.6 percent favorable

          impact from exchange, with continued strong growth in Latin American

          and Asian markets. Excluding the impact of Synagis, U.S. nutritional

          sales increased 11.0 percent, driven by 10.8 percent growth in

          pediatric nutritional sales.


          Medical products sales growth of 11.5 percent was led by global

          Diabetes Care sales, which increased 15.2 percent. In addition, the

          core laboratory diagnostics business grew 11.0 percent and point of

          care sales were up 26.2 percent. Abbott Vascular achieved sales of

          more than    $400 million, up 7.2 percent. This performance was

          driven by international sales of XIENCE V and continued growth in

          bare metal stents, partially offset by other coronary sales,

          reflecting lower third-party catheter sales due to a decline in the

          percutaneous coronary intervention (PCI) market. In addition, Abbott

          Molecular sales increased 26.3 percent this quarter.


     Q3)  What drove R&D and SG&A spending in the quarter?


     A3)  The company is on track for five major new product launches in 2008.

          This level of late-stage pipeline activity has been supported by

          increased R&D and SG&A spending.


          R&D investment reflects continuing progress in our pharmaceutical

          and medical products pipelines, including new HUMIRA indications;

          ABT-874, our anti-IL-12/23 therapy in Phase III development;

          controlled-release Vicodin; and, XIENCE V, our next generation

          drug-eluting stent, as well as several promising Phase I and Phase

          II clinical programs in neuroscience and oncology.


          SG&A expense included new and ongoing promotional initiatives,

          including spending to support the launch of new indications for

          HUMIRA, the international launch of XIENCE V, and preparation for

          five major product launches in 2008.


     Q4)  How does the fourth-quarter gross margin profile compare to the

          prior year?


     A4)  The gross margin ratio before and after specified items is shown

          below (dollars in millions):


                                         4Q07                   4Q06

                                Cost of          Gross Cost of          Gross

                                Products Gross  Margin Products Gross  Margin

                                  Sold   Margin    %     Sold   Margin    %

    As reported                  $3,162  $4,060  56.2%  $2,866  $3,352  53.9%

    Adjusted for specified items:

      Asset impairment                -       -      -    ($98)    $98   1.6%

      Omnicef inventory

       write-down                  ($33)    $33   0.5%       -       -      -

      Litigation settlement           -       -      -    ($90)    $90   1.4%

      Cost reduction initiatives

       and other                  ($118)   $118   1.6%   ($140)   $140   2.3%

    As adjusted                  $3,011  $4,211  58.3%  $2,538  $3,680  59.2%




          The comparison of the 2007 adjusted gross margin ratio of 58.3

          percent to 2006 was impacted by the reduction in the contribution

          from Synagis in the United States, generic competition for Omnicef,

          and higher commodity costs in our nutritionals business.


     Q5)  Why did Net Interest Expense increase from the prior year?


     A5)  Net Interest Expense increased over the prior year primarily as a

          result of debt related to the Kos Pharmaceuticals acquisition.


     Q6)  How did specified items affect reported results?


     A6)  Specified items impacted fourth-quarter results as follows (dollars

          in millions, except earnings-per-share data):


                                        4Q07                    4Q06

                                   Earnings               Earnings

                                         After-                 After-

                                Pre-tax   tax    EPS   Pre-tax   tax     EPS

    As reported                 $1,483  $1,203  $0.77   ($242)  ($476) ($0.31)

    Adjusted for specified items:

      Acquired in-process and

       collaborations R&D            -       -      -  $1,307  $1,300   $0.85

      Asset impairment               -       -      -     $98     $74   $0.05

      Acquisition integration      $52     $42  $0.03     $79     $60   $0.04

      Omnicef inventory

       write-down                  $33     $26  $0.02       -       -       -

      Fair-value adjustments

       for BSX stock and gain

       on financial instruments    $53     $34  $0.02      $6      $4       -

      Litigation settlement          -       -      -     $90     $69   $0.04

      Cost reduction initiatives

       and other                  $183    $148  $0.09    $155    $122   $0.08

    As adjusted                 $1,804  $1,453  $0.93  $1,493  $1,153   $0.75




          Acquisition integration relates to costs associated with the

          acquisitions of Guidant Vascular and Kos Pharmaceuticals. The

          Omnicef inventory write-down relates to an adjustment due to the

          generic introduction of Omnicef. Also, in accordance with SFAS 159,

          Abbott's investment in BSX stock is being accounted for at fair

          value. Changes in the fair value are reflected in the income

          statement and tracked as a specified item, along with any related

          realized gains/losses on disposition of this stock. Cost reduction

          initiatives and other relate primarily to continuing efforts to

          improve efficiencies in our global manufacturing operations. This

          includes the fourth-quarter actions to streamline operations in our

          vascular business as a result of improved manufacturing efficiencies

          and a decline in the percutaneous coronary intervention (PCI)

          market. These actions included the closure of the former ZoMaxx

          drug-eluting stent manufacturing facility and other manufacturing

          related reductions.


          The pre-tax impact of the specified items by Consolidated Statement

          of Earnings line item is as follows (dollars in millions):


                                                          4Q07

                                           Cost of                    Other

                                           Products                  (Income)/

                                             Sold      R&D     SG&A   Expense

    As reported                             $3,162    $662    $1,879     $56

    Adjusted for specified items:

      Omnicef inventory write-down             $33       -         -       -

      Acquisition integration                  $12      $3       $37       -

      Fair-value adjustments for BSX stock       -       -         -     $53

      Cost reduction initiatives and other    $106     $23       $54       -

    As adjusted                             $3,011    $636    $1,788      $3




     Q7)  What was the tax rate in the quarter?


     A7)  In line with the previous forecast, the tax rate this quarter,

          excluding specified items, was 19.5 percent. The reconciliation of

          the tax rate for the quarter is provided below:


                                            4Q07

                               Pre-tax     Income      Tax

                               Income       Tax        Rate

    As reported                $1,483       $280       18.9%

    Specified items              $321        $71       22.4%

    Excluding specified items  $1,804       $351       19.5%




     Q8)  How did the TAP joint venture perform this quarter?


     A8)  Income from the TAP joint venture was in line with previous

          forecasts. Prevacid sales were $550 million and Lupron sales were

          $171 million.


     Q9)  What are some near-term opportunities in Abbott's pipeline?


     A9)  Abbott has a number of promising late-stage programs in its

          pharmaceutical and medical products pipeline, including:


          *    HUMIRA

               o    Psoriasis -- Launched in Europe and the United States in

                    the first quarter of 2008.

               o    Juvenile RA -- Submitted for regulatory approval in May of

                    last year.

               o    Ulcerative colitis -- Currently in Phase III development.


          *    XIENCE V Drug-Eluting Stent (DES) -- In the fourth quarter, the

               Circulatory System Devices Advisory Panel to the U.S. Food and

               Drug Administration (FDA) recommended approval for the XIENCE V

               drug-eluting stent.


          *    Controlled-release Vicodin -- A controlled-release form of

               Abbott's pain brand, Vicodin, was submitted for U.S. regulatory

               approval in the fourth quarter of 2007.


          *    Simcor -- Simcor, a combination therapy to address both HDL and

               LDL cholesterol, was submitted for FDA approval in April of

               last year. Phase III Simcor data were presented at the American

               Heart Association meeting in November 2007.


          *    ABT-335 -- Abbott's next-generation fenofibrate was submitted

               for U.S. regulatory approval in the fourth quarter of 2007. In

               addition, ABT-335 is part of the fixed-dose combination with

               Crestor that is in Phase III development.


          *    ABT-874 -- In Immunology, Abbott's anti-IL-12/23 biologic, ABT-

               874, has demonstrated promising results in early studies for

               Crohn's disease and psoriasis. The company moved ABT-874 into

               Phase III development for psoriasis in December 2007.


          *    Flutiform -- A combination asthma treatment in Phase III

               development, Flutiform is expected to be submitted for U.S.

               regulatory approval in the second half of 2008. Abbott will

               promote the product in the United States.


          *    Diabetes Care Pipeline -- FreeStyle Freedom Lite was

               successfully launched internationally last year and is pending

               approval in the United States. Abbott's FreeStyle Navigator

               Continuous Glucose Monitoring System was launched in Europe

               last year and is under active U.S. FDA review. Also in

               development is a fully integrated blood glucose monitoring

               system combining a meter, test strips and lancing capabilities

               in one device.


          *    m2000 Molecular Diagnostics System -- Last year, Abbott

               received FDA approval for the RealTime HIV-1 viral load test

               for use on the m2000 molecular diagnostics system. Abbott

               expects to expand its U.S. menu of infectious disease assays in

               the future.


     Q10) What are some mid- and early-stage opportunities in Abbott's broad-

          based pipeline?


     A10) Abbott is advancing leading-edge scientific discoveries in its mid-

          and early-stage pharmaceutical and medical products pipeline.

          Following are selected areas of emphasis:


          *    Neuroscience

               o    Abbott's neuroscience pipeline includes several unique

                    approaches for treating a number of diseases including

                    schizophrenia, ADHD, Alzheimer's disease and pain.

                    Compounds under development target neuronal nicotinic

                    receptors (NNRs), which play a role in regulating pain,

                    memory and other neurological functions.


          *    Oncology

               o    In 2007, Abbott announced a collaboration with Genentech

                    to develop and commercialize two Abbott discovered

                    oncology compounds. These include a multi-targeted kinase

                    inhibitor and Bcl-2 family protein antagonist. Both

                    represent promising, unique approaches to treating cancer.

                    Abbott and Genentech will work together on all aspects of

                    research, development and commercialization.


               o    Additional oncology compounds in Abbott's pipeline that

                    are not part of the collaboration include: a PARP-

                    inhibitor, which prevents DNA repair in cancer cells,

                    enhancing the effectiveness of current cancer therapies;

                    an oral anti-mitotic in Phase II for non-small cell lung

                    cancer and neuroblastoma; and, a biologic anti-tumor agent

                    with a novel mechanism of action.


          *    Hepatitis C

               o    Abbott has partnered with Enanta Pharmaceuticals to

                    develop protease inhibitors for the treatment of hepatitis

                    C (HCV), which affects more than 170 million people

                    worldwide. Abbott also has an internal HCV polymerase

                    program in early-stage development.


          *    Bioabsorbable Drug-Eluting Stent

               o    Abbott has presented promising data from the world's first

                    clinical trial (ABSORB) for a fully-bioabsorbable drug-

                    eluting stent (DES) to treat coronary artery disease. The

                    bioabsorbable DES is designed to be slowly and completely

                    metabolized by the body over time.

CONTACT: Financial, John Thomas, +1-847-938-2655, Larry Peepo,+1-847-935-6722, Tina Ventura, +1-847-935-9390, or Media, Melissa Brotz,+1-847-935-3456, Scott Stoffel, +1-847-936-9502, all of Abbott

Web site: http://www.abbott.com/

Ticker Symbol: (NYSE:ABT)

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Copyright © 2008 PR Newswire Association LLC. All rights reserved.
A United Business Media Company

Posted: January 2008


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